Xin chang tai (新常态) is the term that most accurately characterizes China’s economy today. It is a literal translation of the English term new normal, meaning “a new state of normality.”After reform and opening up, China’s economy maintained a double-digit annual growth rate for decades, then slowed to around 7% in 2012. Chinese authorities have described this as the “new normal” state, to which they intend to adjust China’s economic policy.

China’s new normal does not mean abandonment of growth, but rather a transition to a new way of growth. Changes in China’s economic fundamentals have confronted China’s steel industry with “new normal”market environment and structures. The industry has set out in search of new solutions.